On September 4, LAOPU GOLD rose 3.21% in regular trading, trading at HK$400.0/share, with turnover of HK$69.49 million. The rebound follows a fresh research report from Shenwan Hongyuan maintaining a Buy rating with a target price of HK$639.25, coupled with a gold price recovery lifting broader sector sentiment.

Shenwan Hongyuan maintained its adjusted net profit forecasts for the company at RMB 6.499 billion, RMB 7.452 billion, and RMB 8.458 billion for the next three fiscal years, assigning a 13x adjusted P/E multiple based on the company's unique brand value. The broker highlighted the company's brand momentum and international expansion potential. For the first half, the company reported revenue of RMB 19.81 billion, up 60.3% year-over-year, with gross margin rising to 41.3%, driven by relatively low-cost inventory reserves from late last year and a product repricing in February.

Notably, the upgrade comes after a period of mixed sentiment. Morgan Stanley recently trimmed its net profit estimates by 2-3% and flagged low demand visibility into next year, while Bank of America maintained a Neutral stance citing weak consumer sentiment and rising competition risks despite raising its target price to HK$399.

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